Borrowing in the UK fell in April as inflation pushed up the cost of borrowing

The government borrowed .6 18.6 billion last month, 5. 5.6 billion less than in April last year and lower than expected.

City economists forecast 18 18.8 billion in borrowing, and the Office for Budget Responsibility estimated £ 19.1 billion. However, it is still the fourth highest debt of the month since the record began in 1993.

The government has been helped by raising the 5.5 billion tax to .2 50.2 billion, including £ 1.4 billion from the National Insurance increase. Total receipts rose to 70.2 billion, £ 9.9 billion more than the same month last year

While Covid-19 continues to help the government with spending cuts, inflation is rising to a 40-year high, pushing up the cost of lending. The interest payments on the loan were £ 4.4 billion. Of that, the 9 3.9 billion retail price index, which determines the payout of the index-linked gilt, fell 11.1 per cent last month.

Michal Stelmach, a senior economist at KPMG, said: “Following the recent rise in RPI inflation, we now expect monthly interest expense to reach বিল 16 billion in June, exceeding the Home Office’s annual daily budget.”

Sage Sunak, Chancellor, said: “While we are doing everything we can to help families cope with rising prices, inflation is also increasing our spending on debt interest, which is expected to reach £ 83 billion this year. In addition to not burdening future generations, we must now adopt a balanced and responsible approach to support the people, and we are on track to reduce government debt by 2024-25. “

The chancellor announced বস 22 billion in temporary assistance to reduce the cost of living for the family in his spring statement, but there is pressure to do more. He is reportedly considering a windfall tax on electricity companies as well as oil and gas suppliers to help households cope with rising energy prices.

Fuel bills have risen 54 percent in the past month for millions of households whose bill energy costs are determined by cap As a result of the war in Ukraine, food prices are also rising.

Paul Dells, chief UK economist at Capital Economics, said: “Borrowing less than expected £ 18.6 billion in April… and declining borrowing in 2021-22 will only increase the pressure on the Chancellor to grow. When finalizing the upcoming support package for the family. We think any support should be small and targeted, rather than large and wide. “

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, expects public debt to reach a total of about £ 110 billion this year, “above OBR’s £ 99.1 billion forecast, even before any further possible steps are taken to support the family.”

At the end of April, public sector net debt stood at £ 2,347.7 billion, about 95.7 percent of GDP, up 0.9 percentage points annually.

The Office for National Statistics also cut borrowing estimates to £ 144.6 billion by the end of March from আগে 151 billion previously. This was above OBR’s forecast of 127.8 billion pounds.

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